The legal nature of cryptocurrencies and the obstacles to its identification in Iran's legal system

Abstract

Cryptocurrencies were created in order to develop a peer-to-peer payment system without the presence of intermediaries such as banks. Cryptocurrencies are managed in a decentralized manner, and the entire process of publication, payment, confirmation and processing is done by users. Understanding the nature and emerging legal issues surrounding cryptocurrencies is inevitable due to the expansion of their use and the need to identify the nature and legal aspects of cryptocurrencies. Regarding the nature of cryptocurrencies, although custom and users consider it as internet money, but from the legal point of view, it is not as compatible with the concept of money as it should be, and they do not have some necessary functions and conditions. In the international arena, the nature of cryptocurrencies is different and some people consider it as goods, money or rights. From the point of view of jurisprudence, cryptocurrencies can be examined and reflected on from individual and governance aspects, and from the governance aspect, there may be issues and problems. At the moment, in the current laws of Iran, legal establishment for cryptocurrencies is not considered, but by applying the existing laws in the country with the functions and definitions of cryptocurrencies, it can be concluded that cryptocurrencies also have "credit tax" and are "similar" to unbacked money. It is considered, therefore, in case of monitoring and legalization, its use will not conflict with the interests and rights of the public.